Economic Construction

 Comprehensive economic strength 

Since the reform and opening up, especially the implement of the revitalization of the old industrial base in northeast China in October 2003, Jilin province have seized this historical opportunity, insisted on the scientific development, deepened the reform and innovation, kept forging ahead and sought for ways to resolve those institutional and structural contradictory problems. Under the effort of implementing the reform of state-owned enterprises, opening to the outside world, empowering county rights for prosperity, promoting private economy as well as service industry, the economy of the whole province maintained sustained and rapid development and overall strength has remarkably enhanced. What’s more, the society achieved all-round progress and the livelihood of the people had a more substantial improvement, so the old industrial base renewed full of vigor and dynamism. Since 2004 to 2013, the economic aggregate of the whole province has leapt to 300 billion Yuan, 400 billion Yuan, 500 billion Yuan, 600 billion Yuan, 700 billion Yuan and 800 billion Yuan; In 2011, the economic aggregate realized a historic cross of 1 trillion Yuan; in 2013, it reached 1.29815 trillion Yuan, increased by 8.3%, representing an annual average growth of 13.29%.
 
Preliminary accounting, in 2014, Jilin's GDP totaled 1.380381 trillion Yuan. Calculated at comparable prices; it achieved an increase of 6.5% over the previous year. Among them, the added value of the primary industry was 152.456 billion Yuan, up by 4.6%; the second industry was 728.726 billion Yuan, up by 6.6%; the tertiary industry was 499.199 billion Yuan, up by 6.9%. Calculated on permanent population, the per capita GDP reached 50162 Yuan ($8166 at an average annual rate), up by 6.5% percent over the previous year. The structural proportion of the three industries was 11.0:52.8:36.2, the contribution rate of economic growth was 6.8%, 55.6% and 37.6% respectively.
 
In 2014 the province's total consumer price index was 102.0 (above for 100, similarly hereinafter), the general price level rose 2.0%. Among them, the total rural consumer price index was 101.5, up by 1.5%; the urban consumer price index was 102.1, up by 2.1%. Price index of means of agricultural production was 95.1, down by 4.9%. Producer price index was 99.1, down by 0.9%; Industrial producers purchasing price index was 99.2, down by 0.8%; Price index of investment in fixed assets was 100.2, up by 0.2%.
 
Jilin province completed the whole caliber of fiscal revenue 218.86 billion Yuan in 2014, increased by 4.9%, the local fiscal revenue 120.34 billion Yuan, increased by 4.0%. Among them, the annual tax revenue was 88.44 billion Yuan, increased by 3.3%. In the whole tax revenue income, the revenue for the enterprise income tax was 14.32 billion Yuan, increased by17.5%.  The tax revenue accounted 73.5% for the proportion of local fiscal revenue, decreased by 0.5% over the previous year. The local fiscal expenditure of the whole year was 290.69 billion Yuan, increased by 5.9%. Among them: expenditures for social security and employment was 39.02 billion Yuan, up by 8.3%; expenditures for medical care and public health was 20.64 billion Yuan, up by 13.7%; expenditures for energy conservation and environmental protection was 13.4 billion Yuan, up by 5.7%; expenditures for was 40.71 billion Yuan, down by 3.6%; expenditures for housing security was 13.73 billion Yuan, down by 1.3%.
 
An overview of agriculture
 
Jilin province is one of the most important commodity grain production bases in China. The agricultural production is richly endowed by its favorable conditions, and its golden-corn-belt in the middle area is well-known in the world. Its terrain is flat and the soil is fertile so that the grain production plays an important role in China.
 
Since the implementation of reform and opening up policy, the modern agricultural construction in Jilin province has witnessed a significant development. Its Comprehensive agriculture level has dramatically improved, the grain production capacity has stepped into a new stage, reached 65 billion jin. In 2013, the grain production reached 71.02 billion jin with its total production ranked the No.4 and the per unit area yield of grain ranked the No.1 in China. Jilin’s grain commodity rate, per capita share of grain and the per capita share of meat have all ranked the first place in China for many years.
 
In 2014, the added value of agriculture, forestry, animal husbandry and fishery was 157.02 billion yuan which increased by 4.6% compared with last year. The agriculture value added is 88.86 billion yuan increased 6.6%; the forestry value added is 6.53 billion, rose by 12.6%; the animal husbandry value added was 54.61 billion yuan, increased by 1.2%; the fishery value added was 2.45 billion yuan, increased by 12.6% and the service of above value added was 4.56 billion yuan, increased by 5.0%. The area under grain and crops was 75.01 million mu, rose by 3.16 million mu than last year with the 4.4% growth rate in the whole year. And the amount of grain yield was 35.328 million tons that dropped by 0.5%. The wheat production was 27.335 million tons that decreased by 1.5% and the per unit area yield was 7865.7 kg per hectare which dropped by 6.9%. Moreover, with an increase of 4.3% and 1.5% respectively, the rice output was 5.876 million tons and per unit area yield was 7865.7 kg per hectare.
 
As a new emerging animal husbandry base, the total output value of animal husbandry industry in Jilin Province takes up over 40 percent of its overall agricultural output.
 
In 2014, the output of pork, beef, lamb and other poultry has reached 2.567 million tons, an increase of 0.3% over the previous year. Pork output rose by 3.0%,reached 1.404 million tons;beef output reached 460,000 tones, an increase of 2.1%;Mutton output reached 45,000 tons, increased by 6.0%; poultry output was 659,000 tons, a decrease of 6.3%.By the end of the year, the feeding rate of hogs decreased by 0.1%, reached 10.004 million while the slaughter rate of hogs rose by 3.1%, reached 17.211 million over the whole year. Fresh milk output reached 493,000 tons, an increase of 3.6%. The production of eggs rose by 0.8%, reached 985,000 tons.
 
With the entry of new century, agricultural product processing industry in Jilin province has witnessed a swift development and it has already been regarded as the new pillar industry. The year of 2013 has marked an increase of 13.6% in sales revenue, reached 402.8 billion yuan. Jilin province boasts 47 national level leading enterprises in the field of industrialized agriculture and 451 leading enterprises at provincial level. Dacheng Group is crowned as the third largest enterprise focusing on the comprehensive processing of corn, the output of lysine ranking first in the world. Haoyue Cooperation is the largest enterprise centering on the slaughter and processing beef in Asia, it can slaughter and process 1 million beef per year and then export produces to 21 countries and regions. Jinyi Eggs Corporation is the largest eggs processing company nationwide, it can process fresh eggs 350,000 tons annually which usually export to more than 10 countries and regions. With an annual production of 1000 tons of foie gras, Zhengfang Corporation is the largest foie gras producing company in China and their products usually export to Japan, Korea, Middle East countries, Hong Kong as well as other countries and regions. Haoyue, Deda, Huazheng and other three brands in Jilin province have been praised as China Famous Brand.
 
By the end of 2014, the total power of agricultural machinery in the province was up to 29.1905 million kilowatt, with an increase of 7.05%. Compared with the end of last year, the agricultural machinery and equipment in Jilin Province had increased, of which are 480800 sets of large and medium-sized tractors, 183500 electro-mechanical, water-saving irrigation machinery 39600 sets, with the growth of 9.15%, 0.7% and 2.86% respectively. The irrigation and water conservancy construction projects has strengthened, effective irrigation area of farmland and the security has reached 1.8191 million hectares and the area of the land which ensure stable yields despite drought or excessive rain has reached 737800 million hectares. The all-year-round rural electricity consumption reached 4.875 billion KWH, an increase of 1.1%.
 
Project of Incremental 10 billion jin Commodity Grain Capacity
 
The project of increasing the capacity of commodity grain yield to ten billion jin is the first plan of increasing grain yield approved by the State council in July, 2008, and is an important part of the overall planning of increasing grain yield to hundred billion, including project of water diversion, project of construction and renovation for the irrigated area, project of protecting for the land in central and consolidation for the western land, project of construction for standard farmland, project of researching, developing and promotion for fine breed, project of entire agricultural mechanization demonstration, project of developing for the rapid resource, project of production technology integration and popularization, project of preventing for the disease pest and weed and rat and project of and securing for the ecology. There were 29 construction projects, and the construction period was between 2008 and 2012.Through the implementation of the project, it was effective to promote the province's overall grain production capacity. During the period of "11th Five-Year Plan", the province's annual grain output increased to 53.26 billion jin, with annual average 7.19 billion jin more than that of the period of “10th Five-Year Plan”. In 2011, the province's grain output reached 63.42 billion jin, completing the goal one year ahead.
 
Industrial Overview
 
Jilin Province is an important industrial base in China. During the First Five-Year Plan in China, among the 156 key projects, there were 12 key projects which were found, extended and went into operation. They were Changchun First Motor Factory, Changchun Passenger Car Works, Jilin Fertilizer Plant, Jilin Dye Processing Plan, Fengman Hydropower Plant and some other key enterprises, which lay a good foundation on the industrial development Jilin Province.
 
Since the reform and opening up, the industrial structure of Jilin Province has been constantly optimized. With the fast growing of the leading industry and major progress made in reconstructing the traditional industry, the level of industrialization has been improved significantly. Now Jilin Province has formed an industrial system of fairly complete industrial categories which is constituted by three pillar industry--- automobile, petrochemical and agricultural products and some other competitive industries such as medicine, electronic information, metallurgy, construction materials and light textile.
 
Since rejuvenating the old industrial bases of Jilin Province, in order to solve some profound contradictions left from history such as big proportion and lacking in energy of state-owned enterprise, Jilin Province has high concentration on state-owned enterprise reform, which has property rights system as its core. All state-owned enterprises in Jilin Province have completed the task of restructuring. The vitality of the enterprises and state-owned capital’s control capacity has increased significantly. The industrial economy of Jilin Province has developed rapidly and its benefits have an impressive promotion. The pillar and competitive industries such as automobile, railway vehicle, agriculture products processing and medicine are witnessing a strong development momentum.
 
In 2014, the added value of industrial above a designated scale was 649.293 billion RMB, 6.6 percent higher than the last year. The added value of light industry was 199.718 billion RMB, 7.8 percent higher than the last year. The added value of heavy industry was 449.575 billion RMB, an increase of 6.0 percent. Classified by economic types, the added value of stated-owned and state proprietary enterprises is 136.156 billion RMB, an increase of 5.2 percent. The collectively-owned enterprises had achieved the added value of 2.444 billion RMB, an increase of 9.5 percent. The added value of foreign and Hong Kong-Macao-Taiwan invested enterprises was 70.606 billion RMB, an increase of 2.3 percent.
 
Auto Industry
 
It is the first pillar industry of Jilin Province, holding an important position nationwide. In 2013, the increase rate of the auto manufacturing’s added value of the whole province was 11.3%, and the auto industry output accounted for 26.9% of Jilin Province’s economic growth, and taking up 23.5% of the industrial added value. In the same year, FAW produced 2.935 million finished automobiles, an increase of 10.5%, and sold 2.908 million of cars, an increase of 9.9%. During the “12th Five-Year Plan”, Jilin Province updated its pillar industry in a comprehensive way, with FAW as its focus, setting up the service system of the finished automobiles, including R&D, assembling spare parts. By the year 2015, Jilin Province will produce 4 million of finished automobiles, the added value of the auto industry will reach 200 billion yuan, thus establishing world-class auto industry base.
 
China FAW Group Corporation, previously named Changchun First Automobile Workshop, was the cradle of China’s auto industry, a Fortune 500 enterprise. In July 1953,Chairman Mao autographed the foundation stone for FAW. It produced China’s first Jiefang truck, first Dong Feng sedan, and first Red Flag luxury sedan. Now it has the capacity of R&D and production of light, medium, heavy autos and sedans, with its own brands such as Jiefang, Red Flag, Besturn, Xiali, Vita and joint venture brands such as VW, Audi, Toyota and Mazda. New energy passenger cars and sedans went into production and pilot operation. The diesel engine of Jiefang J6 heavy truck was awarded the National Science and Technology Progress Award and the unique Special Award of the China Auto Science and Technology. Its production of finished automobile was 2.935 million in 2013.
 
Petrochemical Industry
 
The second pillar industry of Jilin Province. In recent years, due to the efforts put in building the industry base worth 100 billion yuan, the petrochemical industry is booming. In 2013, the increase rate of added value of this industry was 8.8%. Its output accounted for 13.3% of industry growth. During the “12th Five-Year Plan”, using oil and gas resources home and aboard, supporting leading enterprises like Jilin Petrochemical and Jilin Oilfield, Jilin Province will improve its productive capability in terms of oil and gas, oil refinery and ethylene, and accelerate the integration of refining petrochemical industry, extend the industry chain and the application field. In 2015, the added value of Jilin Province’s petrochemical industry will reach 100 billion yuan, as China’s major petrochemical industry base.
 
Jilin Petrochemical’s predecessor was Jilin Chemical Industrial Company, including dye plant, fertilizer plant, and calcium carbide plant, which was China’s first major chemical industry base built during the “1st Five-Year Plan”. It began its construction in 1954 and went into production in 1957. As the cradle of the chemical industry of PRC, it produced China’s first batch of chemical products. It was merged into CNPC in 1998. Under the instruction of CNPC, its core business formed Jilin Petrochemical and Jilin Chemical Co. Ltd, while its non-core business formed the Jilin Chemical Corporation in 1999. Jilin Petrochemical is the biggest producer of ABS, and one of the leading producers of polyethylene, glycol, EPR, organic silicon and benzene products in China. It has developed into a super large refining and chemical corporation with the productive capacity of 10 million tons of crude oil, 850,000 tons of ethylene, boasting 60 pieces of major equipment, the total value of the group worth 31.7 billion yuan. It has established major projects such as production device of methyl ester with annual productive capacity of 100,000 tons, first-stage ABS project with annual productive capacity of 400,000 tons and production device of styrene with annual productive capacity of 320,000 tons, etc. And it is striving to realize the goal of 100 billion yuan industry base.
 
Railway Vehicle Industry
 
As an advantageous industry in Jilin Province, railway vehicle is showing its momentum of rapid development in recent years. In 2013, Changchun Railway Vehicles Co, Ltd achieved total industrial output value of 24.7 billion yuan with a profit of 1.6 billion yuan. The number of new cars is 2304, among which are 1219 railway vehicles and 1085 urban rail trains. During “the Twelfth Five-Year Plan”, Jilin Province formulated some proposals of the railway vehicle industry development and signed “The Cooperative Agreement on Railway Vehicle Industry Base Construction” with China CNR Corporation Limited, focusing on the development of railway transportation equipment represented by railway vehicles and promotion of the capacity for independent design and manufacture of the new type of core components of urban railways and construction of the first-class international railway vehicle production base.
 
The predecessor of CNR Changchun Railway Vehicles Co, Ltd. is Changchun Car Company, which was founded in 1954 as one of the national key construction projects of China during the “First Five Year Plan” and then was reorganized with today’s name in March 2002. The output of railway vehicles and urban rail trains respectively accounted for 44% and over 55% of the domestically operating vehicles, having the production capacity for 1000 train sets, 1200 urban rail trains and 6000 bogies per year. Now, it has become research and development, manufacture and export base for high-speed rails, urban rail vehicles and bogies with the largest production scale, the highest level of equipment and the strongest ability of research and development.
 
High Technology Industries
 
In recent years, based on advantages, Jilin Province has promoted the rapid development of high technology industries including the innovation of science and technology, bio-medicine, biochemical industry, information, new materials, new energy, new energy vehicles, environmental protection and energy saving. The level and the efficiency index of Hi-technology industrialization in Jilin Province respectively ranked the 20th and the 14th all over the country. Jilin Province has become a national important base for pharmaceutical  research and development, medicine production and export and owned distinct advantages in bio-medicine industry. During “the Twelfth Five-Year Plan”, the province has made a plan with a total investment of 20 billion yuan to promote the quadrupling of the bio-medicine industry output for the goal of reaching 180 billion yuan, and focused on building up the medical advantageous industry into a pillar industry.
 
Private-owned Economy
 
Since the revitalization of the old industrial base of Jilin, the province has carried out a series of policies and measures to vigorously promote nation-wide entrepreneurship, and give priority to the development of private-owned economy, which shows strong momentum of development.
 
In 2013, the private-owned economy in the province continued to maintain the momentum of steady and rapid development.
 
First is the high speed of development. As for the overall private-owned economy in the province, the prime operating revenue reached 2.6728 trillion yuan with a growth rate of 16.1% compared with the same period and cumulatively realized the added value of 660.76 billion yuan, among which the private-owned industries above a designated scale realized the added value of 307.77 billion yuan, with an increase of 12.3%. The growth rate was 2.7% higher than that of the industries above a designated scale all over the province.
 
Second is the good quality of development. The actual tax paid by the small and medium-sized enterprises and the private-owned economy in the province reached 74.82 billion yuan, with an increase of 10.3%, accounting for 35.9% of the full fiscal revenue. The proportion was 0.4% higher than that of 2012. The actual tax also accounted for 64.7% of local and regional fiscal revenue. Privately-run industrial enterprises above a designated scale made profit of 62.04 billion yuan, with an increase of 3.2% and per enterprise made profit of 13.429 million yuan.
 
Third is the increase of number and scale. The number of private enterprises reached 162644, with an increase of 12.6%, among which the number of industrial enterprises above a designated scale, wholesale and retail enterprises and lodging and catering industry above a designated quota and construction industry enterprises and real estate development enterprises within the scope reached 12408 with an increase of 10.3%. Individual businesses reached 1.112 million with an increase of 12.2%. Private investment in the fixed assets was 686.41 billion yuan, accounting for 69.5% of the fixed assets investment in the province (excluding the farmer’) , of which the rate was 0.1% higher than that of 2012.
 
The fourth is the great contribution of society. The added value the private-owned economy of the province accounted for 50.9% of GDP, with an increase of 0.1%, compared with that of 2012, of which the privately-run industries above a designated scale accounted for 50.6% that of industries above a designated scale all over the province. In the private-owned economy, employees reached 6.462 million people with an increase of 5.2%.
 
In 2014, as for the private-owned economy, the added value realized 705.37 billion yuan, accounting for 51.1% of the province’s GDP. In the private-owned economy, the prime operating revenue reached 3.00082 trillion yuan with an increase of 10.3%. The added value of privately-run industrial enterprises above designated scale achieved 331.509 billion yuan, with an increase of 9.8%. The rate was 3.2% higher than the average growth in all industries above a designated scale and the added value made a profit of 59.56 billion yuan with a reduction of 6.9%. 
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